Free Revocability Flashcards
1
Q
Rst. 2d Sec. 25 - Option Contracts (Common Law)
A
The offeror’s power of revocation may be bargained away in exchange for return consideration.
- This option allows an optionee time to consider accepting the offer.
- Option contracts are often formed with the exchange of consideration.
- Consideration may be services or some form of performance instead of money.
- Acceptance is valid upon receipt not dispatch.
Minority rule: if the option is in writing, even if the consideration($) is not paid, the option may be valid.
2
Q
UCC § 2-205 - Firm Offer
A
An offer from a merchant is irrevocable if the offer is in writing and signed by the merchant.
-No consideration is necessary.**
